Auryn and Eastmain Resources had announced the transaction a month ago, designed to create three, commodity-specific exploration companies, with Fury to be focused on Canada and headed by former Agnico Eagle VP of corporate development Mike Timmins. 

Yesterday, the pair said Auryn would issue 7.5 million subscription receipts in two tranches, the first priced at $2 and the second at the flow-through price of $3.50, to be exchanged for Fury Gold shares.

Auryn said it had entered into the agreement with a syndicate of underwriters co-led by Canaccord Genuity and Beacon Securities.

"We are excited to welcome these investors as new shareholders of Fury Gold and to position the company with $22.5 million to carry out its aggressive growth plans through exploration and development over the next 12 months," Auryn executive chairman and director Ivan Bebek said.

"With this financing condition met, we look forward to commencing our planned 50,000m drill programme commencing this fall to expand the Eau Claire high-grade gold deposit, following the closing of the Eastmain transaction."

Auryn said the subscription receipts would be exchanged after the spin-out of its Peruvian assets into two companies and after Auryn's planned share consolidation.

Auryn (TSX: AUG) closed down 7.6% yesterday to $2.55, $1 below its August peak and valuing it at $267 million (US$205 million).

Eastmain lost 6% to close at 23c, capitalising it about $67 million (US$51 million).